SOCIETE TRAVAUX RESEAUX ELECTRIQUES : revenue, balance sheet and financial ratios

In 2024, SOCIETE TRAVAUX RESEAUX ELECTRIQUES achieves revenue of 3.1 M€. Activity remains stable over the period (CAGR: -0.4%). Significant drop of -15% vs 2023. After deducting consumption (867 k€), gross margin stands at 2.3 M€, i.e. a rate of 72%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 539 k€, representing 17.1% of revenue. Positive scissor effect: EBITDA margin improves by +10.1 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 302 k€, i.e. 9.6% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 4%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 63%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.1 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 14.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 270.60. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.0x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 71 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 91 days. Favorable situation: supplier credit is longer than customer credit by 20 days. Inventory turnover is 13 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 39 days of revenue, i.e. 339 k€ to permanently finance. Notable WCR improvement over the period (-36%), freeing up cash.

Indicative estimate only : the number of comparable transactions in this sector is limited (29 transactions). This range of 272 854€ to 1 398 262€ is provided for information purposes only and requires in-depth analysis to be confirmed.